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CEO Brett Schulman clarified that the Harissa meal was a brand-building exercise focused on emotional connection, not value. CFO Tricia Tolivar explained that the 'honeymoon effect' involves some exceptionally high-volume 2024 stores posting negative comps as they normalize, impacting the overall same-store sales calculation.

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CFO Tricia Tolivar stated that while the guidance reflects macro uncertainty, CAVA's Q1 data shows no signs of consumer weakness. She confirmed positive traffic across all geographies, income levels, and dayparts, with lower-income strata even outperforming. The reiterated 'high 30s' 3-year stack guidance for the full year accounts for lapping the successful steak launch in the second half.

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Co-Founder, CEO & Director Jonathan Neman clarified that the significant protein portion increase was a Q3 initiative, not Q2, and that sequential improvement has been observed since July. He noted a new marketing head will join in September to review the marketing mix. CFO Mitch Reback added that Q2 advertising spend was allocated more toward local stores versus national brand building. Neman confirmed that pressure in the urban Northeast has persisted, consistent with broader industry trends.

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CFO Mitch Reback confirmed a noticeable negative change in Washington D.C.'s performance around early April, in addition to the previously mentioned lingering impacts from wildfires in Los Angeles. CEO Jonathan Neman explained that collaborations like COTE are about introducing bold new flavors and building culinary credibility, which drives discovery and reinforces the brand's premium, innovative positioning, rather than relying on the collaborator's name recognition alone.

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Michael Bailen, Senior Director & Head of IR and Financial Analysis, explained that the higher inflation guidance is due to resilient retail demand for beef combined with a tightening supply situation as producers cut back. He noted that costs rose in June, which will impact Q3 results, and confirmed the company has locked in 80% of its beef for Q3 and 50% for Q4.

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Executive Michael Bailen confirmed that the company's menu pricing is currently below its inflation guidance, which is a typical approach for them. He explained that the positive mix shift seen in the first five weeks of Q2 was driven by improvements in the entree and appetizer categories, while the alcohol mix remained slightly down.

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Executive Michael Bailen detailed the 7.7% Q4 comp growth, comprised of 4.9% traffic and a 2.8% check increase, which implied a 30 basis point negative mix due to lower alcohol sales. He confirmed that both Texas Roadhouse and Bubba's 33 experience a similar maturity pattern, with high opening volumes during a 'honeymoon' period, followed by a slight dip before entering the comp base and beginning to grow year-over-year.

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CFO Sami Siddiqui confirmed franchisees are increasingly leaning into the full 'Sizzle' remodels, which are yielding even better uplifts than the mid-teen average. Executive Chairman Patrick Doyle addressed Popeyes by stating the key to growth is improving store-level operations, pointing to the brand's international success as a proof point. CEO Josh Kobza added that a clear plan is in place to modernize the entire Popeyes system with the 'easy to run kitchen' format.

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CEO Josh Kobza stated that RBI's data does not show a significant directional difference in performance between income cohorts in the U.S. He did note a dip in consumer confidence in Q1 that correlated with market softness, but has seen some recovery in Q2. Regarding Tim Hortons, Kobza asserted there is no evidence of a trade-off between unit growth and same-store sales, expressing high confidence in the brand's continued performance and pointing to strong momentum returning in Q2.

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CFO Sami Siddiqui explained that higher commodity costs at Burger King U.S. offset some flow-through. CEO Joshua Kobza noted that for Tim Hortons, underperformance in hot beverages due to warmer weather offset strength in other areas. Executive Chairman Patrick Doyle added that improved procurement and stronger operators are also bolstering franchisee profitability.

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CEO Josh Kobza attributed BK's success primarily to effective marketing like the Addams Family tie-in, though he noted some positive macro signs. Executive Chairman Patrick Doyle added that long-term confidence comes from fundamental improvements in service and remodels, not just promotions. For Tim Hortons, Kobza pointed to strong breakfast food sales growth (+5.8%) as evidence the brand is performing well across dayparts and gaining ground.

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CFO Raphael Duvivier confirmed that CapEx as a percentage of revenue is expected to decrease significantly under the new capital-light model, leading to higher cash conversion and positive cash flow in the second half of the year. President & CEO Joshua Charlesworth added that Krispy Kreme remains a growth story, with franchising now established as the most capital-efficient model for international expansion. He emphasized that the company will continue to leverage a multichannel model in the U.S., but with a renewed focus on ensuring partnerships are sustainably profitable.

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CFO Jeremiah Ashukian clarified the EBITDA guide was updated due to higher logistics costs, an intentional pull-forward of McDonald's start-up costs, and the Insomnia Cookies divestiture. CEO Joshua Charlesworth and CFO Jeremiah Ashukian added that while they are currently using an in-house model, they have launched an RFP for third-party delivery partners, which could and likely will be part of the McDonald's rollout, to improve efficiency.

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President & CEO Todd Penegor explained the softer Q3 carryout start is within their control and can be adjusted with messaging. EVP & CFO Ravi Thanawala added that transaction-oriented franchisees are performing well, and investing in winning transactions now will pay dividends. He noted that from 2020-2024, the average corporate store generated over $820,000 in four-wall EBITDA, reinforcing the model's strength.

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President and CEO Todd Penegor and CFO Ravi Thanawala clarified that 'penetration' refers to focusing on and growing within nine key countries, not saturation. Thanawala emphasized there is significant runway in these markets, which will account for 50% of gross development. He highlighted strong recent performance, with the U.K. up over 2% in comps and the Middle East up almost 20%, indicating a focus on growing the base, not brand exhaustion.

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President and CEO Todd Penegor attributed the improvement to a balance of both company actions and a modest consumer rebound. He stressed that the best experience and deals must be on first-party channels, hence the focus on revamping the loyalty program. CFO and EVP, International Ravi Thanawala provided proof points, including positive carryout trends and successful loyalty tests that drove first-party transactions.

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CFO Josh Guenser confirmed a slight negative mix offset from items per transaction, a historical trend. He then clarified that the strong performance is coming from all new vintages, both recent and those from several years ago, though it is even stronger in the newest cohorts. CEO Christine Barone added that paid marketing is intentionally focused on these newer markets to build awareness and drive trial, which then feeds into the Dutch Rewards program.

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CEO Christine Barone clarified that mobile orders typically have a slightly lower items-per-transaction count, consistent with morning commuters, but noted this could change as food is added. She stated that they are not currently seeing any demographic shifts but will continue to monitor this, reiterating that the brand appeals to a wide range of customers.

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CFO Josh Guenser confirmed approximately 4 points of price in Q4 and a net 3% roll-off in 2025. CEO Christine Barone attributed high new unit productivity to very strong openings in markets like Southern California and described the initial customer reception in Florida as very exciting. Josh Guenser reiterated that the company remains comfortable with its previously communicated expectations for sales transfer.

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CEO Christine Barone attributed the strong results to the combined positive effects of paid advertising, a surge in Dutch Rewards registrations from new customers, and the accelerated rollout of mobile order. CFO Josh Guenser clarified that the advertising push involved both an increase in total dollar spend and more effective, targeted segmentation efforts.

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Chairman & CEO Chris Kempczinski provided direct answers. He stated that the middle-income consumer's trend improved in Q2, turning slightly positive. Regarding the loyalty program, he explained that its positive impact is not yet large enough to offset the double-digit transaction declines from the low-income consumer segment, to which the QSR industry over-indexes. He noted the loyalty program currently represents about a quarter of the U.S. business, highlighting the significant growth opportunity.

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CEO Christopher Kempczinski clarified that the U.K. is not yet gaining share and the issue is execution against existing competitors, not new ones. Regarding the U.S., he asserted that traffic declines are due to consumers cutting back on visit frequency, particularly for breakfast, rather than a significant shift to other dining segments. President, IOM Ian Borden added that they are confident in their ability to turn around the U.K. business, drawing on learnings from France.

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CEO Christopher Kempczinski addressed the U.K., citing consumer pressure, aggressive local competition on value, and subpar marketing execution in the second half of 2024 as key challenges. CFO Ian Borden explained that overall check growth is affected by moderating pricing and strategic value adjustments, but affirmed that loyalty programs are driving frequency and higher spending over time. He pointed to France as an example of successfully driving both guest count and check.

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CFO Ian Borden explained that while the value meal's check is slightly below average, it is offset by pairing it with full-margin promotions that drive traffic and higher overall spend. He attributed lower McOpCo margins to cost pressures and muted sales, viewing it as a short-term investment. CEO Christopher Kempczinski added that new unit returns remain strong and he sees no impact on development goals.

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CEO Michael Osanloo explained that new, lower-cost restaurant formats are designed for attractive cash-on-cash returns, with operational efficiencies from new kitchen layouts potentially offsetting any margin pressure from higher rent in build-to-suit models. He affirmed the company is proud of its high COGS as a value driver for guests and believes this builds loyalty over time, even if immediate traffic gains aren't apparent.

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CEO Michael Osanloo confirmed the goal is to mitigate the volatile sales curve seen in early new markets. He expressed high confidence in the 2025 growth target due to a strong pipeline of signed leases and available GMs. CFO Michelle Hook added that pricing will be used moderately to offset inflation, as the company believes it retains pricing power and provides strong value.

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CFO Chris Turner and CEO David Gibbs addressed the questions. Turner clarified that ByteConnect is not a subsidy; it is priced lower because it was developed internally at low cost, creating a win-win for Yum! and its franchisees. Gibbs added that while the trade-down from fast-casual is a notable trend, Taco Bell's robust performance indicates it is taking market share from the entire QSR industry, not just one segment.

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Matthew Clark, Executive VP & CFO, characterized the environment as very steady for their brands, allowing them to weather conditions strongly, though they maintain a prudent outlook. He highlighted Flower Child's exceptional performance, with mature unit margins reaching 20.4% and AUVs approaching $5 million, yielding cash-on-cash returns in the mid-30s. He affirmed it will play a bigger role going forward.

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CEO Brian Niccol attributed the improvement to both better operations and more effective marketing, which has successfully increased transactions among non-discounted rewards members and non-rewards customers. Regarding food, he acknowledged Canada's success and stated the company will improve its process for reapplying successful innovations from global markets, like Canada and the UK, to the U.S.

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Chairman & CEO Brian Niccol attributed the improvement to both better operations, as leaders responded to clear service standards, and more effective marketing, which boosted non-rewards and non-discounted transactions. Regarding food, he acknowledged Canada's success and stated that the company will improve its process for reapplying successful innovations from global markets, like Canada and the UK, to the U.S.

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Brian Niccol, Chairman and Chief Executive Officer, clarified that labor had been removed from stores in recent years under the incorrect assumption that equipment could compensate. The current investments are a correction. He added that the company is now building back higher-quality, non-discounted transactions, particularly with non-Rewards customers, which he believes will set the foundation for future margin growth.

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CEO Brian Niccol confirmed the strategy is to redirect funds from underperforming activities to initiatives with higher potential returns. He highlighted the ongoing work to extract supply chain efficiencies as a source of funding for these investments. The goal is to build ongoing capabilities rather than pursuing one-time savings.

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CFO Adam Rymer confirmed that new store productivity remains strong, holding slightly above 80%. CEO Scott Boatwright clarified that the summer marketing campaign was a pre-planned test to gain learnings for future years, not a reaction to market conditions, and that the company successfully gathered insights to inform its 2026 calendar.

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CEO Scott Boatwright stated the slowdown is a combination of factors, including consumer economic uncertainty, weather, and tough comparisons. He confirmed a plan to meaningfully increase marketing spend over the summer, focusing on ROI through digital and social channels to maintain relevance.

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CFO Adam Rymer stated that 2025 pricing is expected to be around 2% with no additional increases assumed, factoring in the December price action and the April FAST Act price rolloff. He attributed the Q4 cost of sales beat to a less severe step-up in avocado prices than anticipated. CEO Scott Boatwright added that the supply chain team has diversified avocado sourcing, with only about 50% now coming from Mexico, mitigating potential tariff impacts.

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Interim CEO Scott Boatwright clarified that traffic trends are accelerating into Q4, even against a successful carne asada promotion last year, driven by strong product, marketing, and operational execution. He confirmed that new technologies, like the produce slicer, are expected to create a significant improvement in throughput by enabling teams to finish prep on time and deploy more effectively during peak hours. CFO Adam Rymer added that expo execution improved from 50% to 60% of restaurants.

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President & CEO Rick Cardenas explained that fine dining's softness is due to post-COVID consumer behavior shifts, not internal resource constraints, and that Bahama Breeze no longer meets the portfolio's strategic criteria for investment. CFO Raj Vennam detailed that casual dining is seeing growth across most income cohorts except those below $50k, while fine dining is experiencing pullbacks from households under $150k but stabilization from those above that level.

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President and CEO Ricardo Cardenas explained that the 'Buy One, Take One' promotion aligns with their current strategy by using core menu items, avoiding deep discounts, and reinforcing Olive Garden's brand equity of abundance. Regarding the new prototypes, he confirmed they are performing at or above expectations and are capable of achieving similar sales and traffic volumes as legacy stores, thanks to optimized layouts and kitchen designs.

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Executive Ricardo Cardenas noted that consumer sentiment is improving, particularly among middle-income guests, which benefits casual dining. He acknowledged some trade-down from fine dining to brands like LongHorn is possible. Regarding Cheddar's, he avoided the term 'inflection point' but expressed confidence in building the unit growth pipeline, supported by a successful new, lower-cost prototype.

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SVP and CFO Craig Pommels clarified that Q3 traffic was skewed by a particularly challenging February and that trends improved significantly as the quarter progressed and into Q4. He noted that performance was steady across demographic cohorts. President & CEO Julie Felss Masino characterized the quarter as a 'speed bump' in a three-year plan, expressing confidence in the long-term underlying trends.

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CEO Mike Spanos clarified that menu simplification savings would be repurposed into quality initiatives rather than providing a major funding source. Instead, he pointed to G&A reductions and cost-saving initiatives identified with a third-party consultant as the primary ways to fund investments. He acknowledged that margins will face near-term pressure during the turnaround, with the ultimate goal of driving consistent traffic to offset the investments over time.

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CEO Mike Spanos clarified that relocations 'are still very much part of the program' alongside remodels. CFO Michael Healy addressed margins, stating that COGS should remain 'relatively stable' as productivity initiatives, primarily from the supply chain, are expected to offset cost pressures from value offerings. He noted labor would likely see more pressure from inflation.

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CFO Michael Healy clarified that while the industry saw some rebound from a July low, their prior guidance had optimistically assumed that their performance relative to the industry would continue to improve, an assumption that has now been flattened. CEO Mike Spanos affirmed his support for the managing partner model and its aligned economic interests, adding that feedback from partners suggests the model should also incentivize sales and profit growth, not just cash flow, to drive retention and a great guest experience.

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CFO Mel Hope explained that the closures are a normal part of managing a large portfolio, often related to expiring leases in trade areas that have shifted over time. CEO Chris Tomasso added that closures can be strategic to optimize market penetration. Regarding 'Surprise and Delight,' Tomasso confirmed the program will continue and will be managed appropriately, emphasizing its value in building long-term customer loyalty.

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CEO Chris Tomasso noted that marketing tests confirmed that messaging around core menu value resonates with consumers. CFO Mel Hope added that while their scale secures egg supply, they still pay a premium, limiting its use as a value message. He clarified the third-party delivery traffic improvement was due to a new partnership arrangement that increased visibility on delivery platforms.

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Ken Cook, CFO, explained that QSR burger traffic has been in a low-single-digit decline for several years, but Q1 industry traffic fell mid-single-digits, which was worse than anticipated. He argued that since Wendy's maintained its traffic and dollar share, the shift in advertising spend did not have a significant negative impact. He added that the company believes enhancing the customer experience will ultimately drive frequency and strengthen the brand's value proposition.

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CEO Kirk Tanner clarified that the closures are not concentrated in any single geography but are spread across the U.S., targeting outdated restaurants to strengthen the overall system. He affirmed there is still significant runway for growth in the U.S. and internationally, with new builds delivering much higher AUVs ($2M) than the closed stores (~$1.1M).

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CEO Robert Lynch and CFO Katherine Fogertey corrected the premise, stating February was the weakest month, with trends improving in March and April. They argued their positive comps show they *were* relatively insulated compared to competitors. They specified that 75% of the quarter's headwinds were concentrated in NYC, LA, and DC due to weather and tourism, while other markets performed very well, some with mid-to-high single-digit comps.

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Executive Alex Kaleida attributed the negative ticket directly to the mix shift towards individual-eater occasions from the newly launched tenders, which have a smaller ticket size than group orders. He confirmed it was not driven by value promotions. On the sales stack question, he reiterated that the company is focused on the 3-year stack, which is expected to be in the high 30% range in the second half, consistent with their full-year guidance.

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CFO Alex Kaleida attributed the negative ticket directly to a mix shift toward individual-eater occasions driven by the tender relaunch, which carry a lower average ticket size than group orders. He confirmed it was not due to value-driven promotions. On the outlook, he reiterated that management is focused on the 3-year stack for the second half, which their guidance implies will be in the high 30% range.

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Executive Alex Kaleida stated that the 4,000+ unit target did contemplate these expansions but has a "plus sign for a reason," indicating no ceiling has been found. CEO Michael Skipworth detailed that the NBA partnership will drive awareness through presence at key events like the All-Star game, in-game branding, social media content, and access to NBA talent for custom TV spots.

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CEO Josh Kobza explained the path to $300k profitability involves a mix of sales growth (from remodels, marketing, ops) and margin improvement (from better discounting, labor efficiency, and technology). CFO Sami Siddiqui clarified the G&A guidance reduction was primarily due to lower stock-based compensation expense, not significant headcount changes.

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CEO Josh Kobza explained the path to $300k profitability involves a mix of sales growth (from remodels, marketing), margin improvement, and labor efficiencies driven by technology. CFO Sami Siddiqui clarified the G&A guidance reduction was primarily due to lower stock-based compensation expense, not major personnel changes.

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